Schmidt: Crazy Startups Still Think They're The Next YouTube

Sure, Google (GOOG) has $15 billion in the bank and more free cash flow than Time Warner and Walmart.  But it’s not going to use it to buy YOUR company. 

Why not?

Because you still have a bubble-headed view of what you’re worth.  After a couple more years of this mess, however, Google will happily swallow your wreckage.

Eric Schmidt on CNBC tonight:

SORKIN: GIVEN YOUR STRENGTH IN THE MARKETPLACE RIGHT NOW AND REALLY WHEN YOU LOOK ACROSS THE BOARD, YOU ARE THE 800-POUND GORILLA RIGHT NOW. WHY ARE YOU NOT TAKING ADVANTAGE OF THIS PERIOD TO TRY TO MAKE ACQUISITIONS?

SCHMIDT: WELL, WE LOOKED AT A FEW. FIRST, I’M NOT SURE PRICES ARE AT THEIR LOW YET. THE SITUATION GLOBALLY IS PRETTY DIRE. AS YOU TALKED ABOUT ON THE SHOW THIS EVENING, THERE IS JUST AN AWFUL LOT MORE BAD NEWS TO COME.SO IT DOESN’T MAKE SENSE TO MOVE FROM OUR PERSPECTIVE UNTIL WE GET NEARER THAT POINT.

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